Global equity markets ended Thursday, October 23, 2025, broadly higher, with sentiment buoyed by optimism over softening inflation expectations and stable corporate earnings. Asian indices led the advance, while U.S. and European benchmarks also posted moderate gains. The Tel Aviv market closed firmly in positive territory, showing resilience as local investors balanced global cues and domestic economic indicators.

United States: Indices Hold Firm as Inflation Test Looms

U.S. stocks edged higher on Thursday, continuing their October rebound ahead of Friday’s closely watched Consumer Price Index (CPI) release. The Dow Jones Industrial Average added 0.31% to close at 46,734.61, while the S&P 500 climbed 0.58% to 6,738.44. The Nasdaq Composite outperformed with a 0.89% gain, ending the session at 22,941.80.

Smaller-cap equities also joined the rally, with the Russell 2000 rising 1.27% to 2,482.66 — signaling a broadening recovery beyond mega-cap tech stocks. Market volatility receded, as reflected by the VIX falling nearly 7% to 17.30, its lowest level in weeks.

The U.S. Dollar Index was little changed at 98.99, while investors rotated cautiously into growth assets. Traders largely expect the Federal Reserve to maintain its current policy stance but are looking for signs of easing inflation that could strengthen the case for rate cuts in early 2026.

Europe: Steady Gains Reflect Resilient Corporate Outlook

European equities maintained their upward momentum, supported by robust corporate earnings and easing concerns over energy costs. The pan-European STOXX 50 index advanced 0.52% to 5,668.33, while the FTSE 100 gained 0.67% to 9,578.57. Germany’s DAX inched up 0.23% to 24,207.79, and France’s CAC 40 closed at 8,225.78, also up 0.23%.

Currency markets were stable, with the euro index edging 0.04% higher to 116.17. However, the British pound slipped 0.25%, reflecting ongoing uncertainty around the Bank of England’s next policy move. Overall, European sentiment remained cautiously optimistic as investors balanced geopolitical risks with steady earnings results from major industrial and financial firms.

Asia: Strong Performance Boosted by South Korea and Japan

Asian markets surged, led by the KOSPI Composite Index in South Korea, which jumped 2.14% to 3,927.97, and Japan’s Nikkei 225, up 1.48% at 49,363.09. The Hang Seng Index added 0.43% to 26,078.90, while mainland China’s Shanghai Composite rose 0.42% to 3,938.98.

The rally was fueled by renewed optimism about regional semiconductor demand and expectations of further policy support from Chinese authorities. However, gains in Australia and India were muted — the S&P/ASX 200 slipped 0.08%, while India’s Sensex fell 0.17%.

Tel Aviv Market: Broad Gains Across Indices

The Tel Aviv Stock Exchange closed higher on Thursday, October 23, with all major indices advancing. The TA-35 gained 0.63% to 3,199.10 points, while the broader TA-125 climbed 0.69% to 3,277.02. The TA-90 index rose 0.81% to 3,543.25, supported by strong trading volumes totaling over 3 billion shekels in equities.

Banking and value-oriented stocks were the session’s key drivers, as the TA-Banking and TA-Value indices gained 0.60% and 1.39%, respectively. Bond trading was active, with the All-Bond General Index up 0.09% amid stable yields. Investor sentiment remains constructive ahead of the weekend, with market participants monitoring global inflation trends and domestic macro updates.

Outlook for Friday, October 24, 2025

Heading into Friday, investors will focus on the U.S. CPI release, which could shape expectations for the Fed’s December meeting and impact global bond yields. A softer inflation reading could extend the current equity rally, while an upside surprise might trigger short-term volatility.

In Tel Aviv, traders are expected to take cues from Wall Street’s overnight performance and global inflation data. With optimism building across regions, the next trading session will test whether the momentum seen on October 23 can carry through to close the week on a strong note.